Japan's Digital Finance Gets Blockchain Backbone via TIS-Avalanche Partnership

Japan's TIS, one of the country's largest payment infrastructure providers, has launched a blockchain-based platform in partnership with Ava Labs, the team behind Avalanche (AVAX), to modernize financial transactions and support the growing demand for stablecoins and tokenized assets. The Multi-Token Platform, built using AvaCloud, Avalanche's enterprise-focused blockchain builder, aims to facilitate the issuance, settlement, and management of digital assets under Japan's Payment Services Act. This move aligns with Japan's broader push toward programmable finance and real-time digital payments, according to a Yahoo Finance report.

TIS processes over ¥300 trillion ($2 trillion) annually through its PAYCIERGE payment system, powering half of Japan's credit card transactions. The new platform, developed with AvaCloud, will provide TIS and its partners a dedicated layer-1 network tailored for privacy, governance, and performance. Ava Labs claims the system can handle over 50,000 transactions per second with near-instant finality, meeting Japan's stringent financial standards, according to a CoinPedia report. The initiative also supports use cases like real-time settlements, embedded finance, and potential central bank digital currency (CBDC) testing, as detailed in a CoinDesk article.

The partnership reflects a growing trend in Japan where traditional financial institutions are adopting blockchain to enhance, rather than disrupt, existing systems. For example, JPYC-the first regulated yen-pegged stablecoin backed by bank deposits and government bonds-launched this week, signaling increased momentum for tokenized assets in the region, according to a Yahoo Finance report. John Nahas, chief business officer at Ava Labs, told CoinDesk that the collaboration underscores how legacy institutions are leveraging blockchain to upgrade infrastructure.

TIS plans to work with banks, businesses, and public agencies to promote the platform globally. Isao Otokita, managing executive officer of TIS, stated in a press release that the initiative will "collaborate with diverse players to promote the global adoption and ecosystem development of next-generation financial infrastructure originating from Japan," as reported by CoinDesk. Nick Mussallem, CEO of AvaCloud, added that the effort could become the backbone of Japan's digital financial system, according to the Yahoo Finance report.

The platform's launch comes as Japan's financial sector increasingly embraces blockchain for efficiency and innovation. By integrating Avalanche's scalable infrastructure, TIS aims to transform decades-old payment systems into programmable financial tools, positioning itself at the forefront of Japan's digital economy, CoinPedia reports.